A new study explains why some AI ads succeed and others fail.
Ads work when the AI is central to the campaign idea.
Consumers feel upset when AI use seems unnecessary or tries to fake emotion.
What happened
A University of Mississippi study published in Journal of Interactive Advertising found that AI ads succeed when consumers understand why AI was used, and fail when it feels unnecessary. Coca-Cola's 2023 Create Real Magic platform was embraced, while its 2025 "Holidays Are Coming" commercial faced backlash, with one YouTube commenter calling it "The most profitable commercial in Pepsi's history."
Why it matters
The researchers say ads using AI unnecessarily can upset consumers, partly due to the uncanny valley effect, where something almost human but not quite induces unease. Creating AI-generated depictions of emotion, like a hurt or hungry child, can leave consumers feeling tricked. Researcher Chang-Won Choi advises marketers to start with the campaign idea first and ask if AI is necessary, rather than using AI just because it is available.
What to watch
Researcher Robert Magee said norms may change over time, just as CGI in movies became accepted. He suggests that as AI becomes more widespread, consumer negativity may lessen, but for now, it is better to err on the side of being careful.
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The study, led by Ole Miss researchers Chang-Won Choi and Robert Magee, was published in Journal of Interactive Advertising. It examines the differing consumer reactions to two Coca-Cola campaigns: the 2023 Create Real Magic platform, which let users create art with the company's logo, and the 2025 "Holidays Are Coming" commercial, which faced public mockery.
The researchers' core concept is the "AI-ad theme match." A strong match occurs when AI is integral to how the campaign works, such as giving each consumer a personal experience that would otherwise be impossible. In these cases, AI is not just a cheaper production tool but an important part of the creative idea. A weak match, where AI is used for tasks human designers could do, can leave consumers feeling upset or unnerved.
Magee notes that negative feelings may diminish as AI becomes more widespread, drawing a parallel to CGI in movies, which was once a source of upset but is now widely accepted. This suggests the current careful approach marketers are advised to take may shift as consumer norms evolve.
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